Bank Mandiri profit up 30.6%

The Jakarta Post, Jakarta

Indonesia's giant Bank Mandiri announced on Friday a 30.6 percent increase in its net profit to Rp 3.59 trillion (US$400.7 million) in 2002, up from Rp 2.75 trillion the previous year, thanks to, among other things, a Rp 1.1 trillion loan write-back.

The company last year booked operating income of Rp 10.5 trillion (including net interest income of Rp 6.87 trillion and non-interest income of Rp 3.63 trillion), up from Rp 8.57 trillion in 2001 (including net interest income of Rp 7.11 trillion, and non-interest income of Rp 1.46 trillion).

Meanwhile, the bank's total operating expenses last year were Rp 4.99 trillion (including total overheads of Rp 3.63 trillion), up from Rp 4.47 in the previous year (Rp 3.42 trillion).

Its total loans increased by Rp 17.1 trillion or 35.3 percent to Rp 65.4 trillion, raising its loan to deposit ratio to 35.4 percent, up from 25.3 percent.

The funds collected from third parties decreased to Rp 184.11 trillion from Rp 190.45 trillion, while its loans increased to Rp 65.42 trillion from Rp 48.34 trillion.

The quality of loans, nonetheless, improved because non- performing loans (NPLs) fell from 9.7 percent in 2001 to 7.3 percent last year, while net NPLs dropped from 3.1 percent to 1.9 percent.

At the end of 2002, Bank Mandiri's capital adequacy ratio (CAR) stood at 23.4 percent, down from the previous year's 26.4 percent.

Total government bonds held as of December 2002 amounted to Rp 148.85 trillion, down from Rp 153.49 trillion previously.

The bank is now awaiting the issuance of a presidential decree on an initial public offering (IPO).